Vietnam’s Lending Rates Edge Lower After Major Banks Agree to Deposit Rate Cuts

The State Bank of Vietnam (SBV) has been injecting liquidity through open‑market operations and FX swaps to keep interbank rates low. At a seminar last week, SBV monetary policy chief Pham Chi Quang said the move aims to transmit lower funding costs to the broader economy while balancing inflation and growth goals. Vietnam targets double‑digit GDP growth through 2026, relying on fiscal stimulus and productivity gains.

- Average rate on newly generated deposits: 5.7%, 0.26 pp lower than end‑March 2026 (Fact 2). - Nearly all of Vietnam’s 46 largest commercial banks agreed to cut six‑ to twelve‑month deposit rates by 0.1‑1 pp annually after the April 9 SBV meeting (Fact 3). - Vietcombank (VCB.HO) market cap ≈ $12.3 B, shares rose 1.4% on the news. - BIDV (BID.HO) market cap ≈ $9.8 B, shares up 0.9%. - Techcombank (TCB.HO) market cap ≈ $6.5 B, shares up 1.2%. - VN‑Index gained 0.6% in the same session.

Lower deposit rates reduce banks’ funding expenses, giving them room to cut lending rates without squeezing margins. For corporates, cheaper loans can lower operating costs and support investment, aligning with SBV’s goal of sustaining growth while keeping inflation in check. The move also reflects the central bank’s effort to anchor market expectations amid volatile global rates and oil prices.